This example shows how the E-Mini S&P can be a very tricky market. The Atlas Line gives a short order 1461.75. If you followed this short signal by itself, the trade would have not been profitable. There’s a way we filter these trades – we can detect if a market is overbought or oversold. Overbuying or overselling is another way to say a market has exhausted itself going long or going short. We can gauge exhaustion by calculating the difference between the Atlas Line’s entry signal minus the price the Atlas Line is currently plotting at. In most of the Day Trade to Win videos, the Atlas Line is a dashed link of a pink, red or blue color. The plotted begins after 9:30 a.m. usually and provides a measurement to go long or short based on price’s position against the line. If we double the ATR value and determine it is less than the distance between the plotted line and plotted entry signal, we can determine that the market is exhausted and the trade should NOT be taken. Yes, this is a minor consideration one has to perform when using the Atlas Line. It is better to learn to quickly calculate this instead of losing money on a big reversal. You can find more about the Atlas Line trading software at Day Trade to Win.